The AES Corporation (AES)vsSouthern Company (SO)
AES
The AES Corporation
$14.45
0.00%
UTILITIES · Cap: $10.30B
SO
Southern Company
$96.70
+3.41%
UTILITIES · Cap: $109.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 142% more annual revenue ($29.55B vs $12.23B). SO leads profitability with a 14.7% profit margin vs 7.4%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 55/100 (C).
AES
Buy55
out of 100
Grade: C
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.3%
Fair Value
$18.13
Current Price
$14.45
$3.68 discount
Margin of Safety
-35.0%
Fair Value
$71.61
Current Price
$96.70
$25.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Areas to Watch
4.7% revenue growth
ROE of 1.9% — below average capital efficiency
7.4% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AES
The strongest argument for AES centers on P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : SO
The strongest argument for SO centers on Market Cap. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : AES
The primary concerns for AES are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 7.98 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
AES carries more volatility with a beta of 1.01 — expect wider price swings.
SO is growing revenue faster at 10.1% — sustainability is the question.
AES generates stronger free cash flow (-47M), providing more financial flexibility.
Monitor UTILITIES - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AES scores higher overall (55/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The AES Corporation
UTILITIES · UTILITIES - DIVERSIFIED · USA
The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.
Visit Website →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
Compare with Other UTILITIES - DIVERSIFIED Stocks
Want to dig deeper into these stocks?